Summit: Modest Prospects with Some Bright Spots
Comparative insights into the recent performance of the European outof-home market, nurtured by fresh consumer research data, were providedby Jochen Pinsker at the 13th European Foodservice Summit thisSeptember. The Senior Vice President Foodservice Europe of the NPDGroup Inc. also emphasised significant changes in eating out habitssince 2007, as well as identifying various bright spots in an away-fromhomemarket that continues to find itself under pressure.www.npdgroup.de
So far this year, total spend in the five major European markets â€“ France, Italy, Germany, UK, Spain â€“ showed a slight growth (0.7%) until June 2012, according to CREST (consumer reports on eating share trends) panel data, with a downward tendency in the second quarter. Germany has been the main driver ofgrowth with a 3.5% upswing, another 1.6% plus was contributed by France, whereas Great Britain was nearly flat and the two Mediterranean markets showed negative growth â€“ in the case of Spain, it was the 18th negative quarter in a row.
Whilst total spend refers to the number of visits multiplied by the amount spent per visit, Pinsker explained that consumer willingness to eat out has been flat or declining all over Europe. Growth has been driven solely by increased receipts in those markets where economic conditions were better (Germany, France).
This also means that the gaps between the Big 5 countries have been widening since 2010.
Even in declining markets, however, chains managed to do better than independents, with +3.4% overall, compared to -1% in total spend. According to Pinsker, one major reason, besides stronger financial backing that allows for network growth and greater expenditure on marketing, is that consumers prefer the no risk option associated with branded chains, particularly when economic conditions get tighter.
In tougher times, as in the last recession in 2009, consumers tend to respond by trading down or trading out. Skipping add-ons such as desserts or the second drink has been one way of reducing expenditure, another is switching to less expensive restaurants, as well as seeking value through promotions and price Comparative insights into the recent performance of the European outof- home market, nurtured by fresh consumer research data, were provided by Jochen Pinsker at the 13th European Foodservice Summit this September. The Senior Vice President Foodservice Europe of the NPD Group Inc. also emphasised significant changes in eating out habits since 2007, as well as identifying various bright spots in an away-fromhome market that continues to find itself under pressure. www.npdgroup.de
deals. Interestingly, today, in the better performing economies, consumers are more likely to upgrade their restaurant choice, while still keeping a keen eye on the price/value equation.
| 10 May 2013 |